Charity Regulator To Test Compliance in the NFP Sector

Australia’s new charity regulator, the ACNC Taskforce, is recruiting Compliance Teams to identify and manage risks in the sector.

The newly appointed director of Compliance, Andrew Sealey, says his first priority is focusing on proactive monitoring (to test compliance in the sector) and conducting formal investigations (to assess suspicions of serious non-compliance).

“Our Intelligence team will play a vital role in gathering information to identify emerging risks in the sector,” Sealey said.

“After a week of ACNC induction training my focus has turned to the development of a compliance framework that will enable the ACNC to proactively identify and manage risks in the sector." 

The Head of ACNC Implementation Taskforce, Susan Pascoe, says Andrew Sealey is a qualified lawyer with extensive legal, compliance and regulatory experience.

“The ACNC’s Compliance Team will be working very closely with other ACNC teams, particularly the Policy and Education team to ensure that our compliance activities are proportionate and that appropriate opportunities for self-correction are explored,” Sealey said.

“This approach is based on the premise that the vast majority of charities have good intentions and may inadvertently breach requirements. Our approach also recognises there will be instances of deliberate and serious misconduct which will require us to act swiftly and decisively to achieve an effective and proportionate outcome.”

The ACNC says some of the next steps it will be taking to build the ACNC Compliance Framework will be:

• Developing a risk based approach to ensure resources are focussed on those areas that present the greatest risk to the sector and the ACNC’s objectives;
• Developing policies, processes and procedures in relation to the use of enforcement powers. The ACNC’s use of enforcement powers will be based on principles of proportionality, procedural fairness and transparency; and
• Building effective working relationships with key law enforcement and intelligence agencies to ensure the ACNC will be in a position to exchange relevant information.

Sealey says he is currently working to ensure that the ACNC Website contains information that clearly explains the role and approach of the Compliance Team.

“Underpinning all of this work is the necessity of ‘road testing’ some of these approaches, concepts and ideas with the sector. I hope to be able to meet with sector representatives to obtain input and feedback into this process.”

For more information visit the ACNC website.